(Transcript from SBS World News Radio)
The federal government is attempting to walk a fine diplomatic line with Indonesia following the executions of Myuran Sukamaran and Andrew Chan.
The Bali Nine ringleaders are among seven foreign nationals and one Indonesian shot dead by firing squad on the island of Nusakambangan.
Prime Minister Tony Abbott has announced Australia's Ambassador to Indonesia, Paul Grigson, will be withdrawn as soon as the formalities of dealing with the bodies of the Australians is finished.
Mr Abbott has also revealed the government suspended ministerial contacts with Indonesia once it became clear the executions would proceed.
Amanda Cavill reports.
(Click on the audio tab above to hear the full report)
With Foreign Minister Julie Bishop by his side at Parliament House in Canberra, a grave Mr Abbott described the executions as both cruel and unnecessary.
He says while he respects Indonesia's sovereign right to uphold tough domestic laws against drug smugglers, it cannot now be 'business as usual' between Canberra and Jakarta.
In an unexpected move, Mr Abbott has recalled Australia's ambassador Paul Grigson for consultations.
Mr Abbott says while the relationship between Australia and Indonesia is very important, it has suffered as a result of what's been done.
"I absolutely understand people's anger. On the other hand, we do not want to make a difficult situation worse and the relationship between Australia and Indonesia is important, remains important, will always be important, will become more important as time goes by. So I would say to people yes, you are absolutely entitled to be angry but we've got to be very careful to ensure that we do not allow our anger to make a bad situation worse."
Julie Bishop says it's important that Australia register it's disappointment that the apparent rehabilitation of the Bali Nine pair was not taken into consideration, and that legal processes were not allowed to run their full course.
She says the government will now discuss how best to handle the bilateral relationship in future
"The withdrawal of an ambassador is to register our displeasure at the way our citizens have been treated. The consultations are to enable us to discuss with Ambassador Grigson the way forward in relation to the Indonesia-Australia relationship in the longer term. You will be aware that there are a number of legal proceedings still underway and we need to discuss with our ambassador the consequences of those legal proceedings."
Asked if Australia will respond to the executions by reducing aid to the country, Ms Bishop didn't rule it out, saying it's under a different consideration to other diplomatic actions.
Australia gives Indonesia about $600 million in aid annually, and is its second largest international benefactor behind Japan.
Greens leader Christine Milne says she believes it's important that Australia takes a strong stand on the issue.
Ms Milne says while there needs to be a discussion about how the relationship between the two neighbours progresses, redirecting aid from Indonesia isn't an appropriate response.
"The Australian Greens are big supporters of foreign aid and foreign aid is to help people in addressing poverty, in addressing disaster and I don't believe that the foreign aid budget should be redirected. That is where you have to draw a distinction between ordinary people suffering and the role of their Government. And I don't believe redirecting foreign aid would be an appropriate response because Indonesian people need that aid.
Opposition Leader Bill Shorten and his Foreign Affairs spokeswoman have acknowledged the tireless efforts of diplomats, Mr Abbott and Ms Bishop in trying to secure clemency for the pair.
Tanya Plibersek has told the ABC any other action against Indonesia should be a matter for thought and discussion.
"We support the Government in their decision to recall our ambassador and we support the Government in their decision to continue to suspend high-level ministerial visits in both directions. I think anything beyond that is a discussion for another day. "
It is unclear what effect Australia's decision to withdraw its ambassador from Indonesia will have on the relationship between the two countries.
In January, Brazil withdrew its ambassador after one of their nationals was executed and it also decided to delay the swearing in of Indonesia's ambassador to Brazil.
In retaliation Indonesia says it is reviewing the entire diplomatic relationship with Brazil, which includes about $4 billion-worth of trade.
Australia's live cattle trade and billions of dollars of investment could hang in the balance if Indonesia takes similar action against Canberra.
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